In the 1st quarter of 2001 merck paid a regular quarterly

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In the 1st quarter of 2001 Merck paid a regular quarterly dividend of $.34 a share.

a. Match each of the following sets of dates:

(A1) 27 February 2001

(B1) Record date

(A2) 6 March 2001

(B2) Payment date

(A3) 7 March 2001

(B3) Ex-dividend date

(A4) 9 March 2001

(B4) Last with-dividend date

(A5) 2 April 2001

(B5) Declaration date

b. On one of these dates the stock price is likely to fall by about the value of the

dividend. Which date? Why?

c. Merck"s stock price at the end of February was $80.20. What was the dividend yield?

d. If earnings per share for 2001 are $3.20, what is the percentage payout rate?

e. Suppose that in 2001 the company paid a 10 percent stock dividend. What would be the expected fall in price?

Reference no: EM13573691

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